4th June 2009
Citi waiver agreed
Further to earlier announcements, the Board of DDL is pleased to inform shareholders that it has concluded its negotiations with Citi for the amendment to certain terms of the five facility agreements (the “Citi Facilities”) between Citi, in its capacity as Arranger, Agent and lender, and certain subsidiary companies of DDL. The Company remains in negotiations with one syndicated party.
Under the terms of the amendments, Citi has, in its capacity as Agent for the respective lenders of the Citi Facilities, facilitated the agreement of the lending group (which includes Citibank International plc), to amend the current loan to value covenants as set out in the five facility agreements. In the opinion of the Board of DDL, these amendments of the loan to value covenants should enable the Company to weather the current market instability in the German property market.
The Company continues to have discussions with its other lenders in respect of its banking facilities with a view to providing long-term stability to the Company.
Commenting on the arrangements, Grant Tromans, a Director of DDL and a Director of the management company to DDL, who led the negotiations on behalf of the Company said: “We are delighted to have secured the continued support of our lenders including Citi at a time when there is increasing uncertainty in the global financial system. We believe that these arrangements will help secure the long term future of DDL and provide a strong platform to help realise value for all stakeholders in the Company.”.
Derek Butler, Chairman of DDL, said: “We believe this is an excellent outcome for the Company in view of the current economic circumstances and shows great support from our majority debt provider in the ability of the Company and the Manager.”.